And for Pantheon Macroeconomics' Ian Shepherdson, this rise
builds on an upward trend showing a "modest revival" for capital
expenditures, which have been impacted in a big way by the
pullback in oil-related investment over the last year.

In a note to clients on Wednesday, Shepherdson
wrote:

"The trend in core capex orders is now clearly turning
higher, following the collapse triggered by the rollover in oil
companies' spending. That's now over, and the underlying
upward trend in place before the oil hit is re-emerging.
In short, this is a solid report, pointing to a strong
start for Q4 equipment spending."

Pantheon Macroeconomics

The year-on-year trend, however, is still weak, as compared to
last year core capital goods orders fell 3.8%.

And as we noted last month, a tracker of this yearly change — the
so-called
McCulley indicator named after former PIMCO managing director
Paul McCulley — fell to a six-year low.

However, it's no big surprise that orders have not rebounded
year-on-year because the plunge in oil prices will still take a
few months to roll off.

But the big call here is that Shepherdson sees the trend that
weighed on overall business orders in the first half of this year
finally coming to an end.